Essay on Opportunity Cost

Opportunity Costs and Hidden Inventions I disagree that I am not wealthy enough to have this Bugatti because in reality, who is wealthy or not wealthy enough to afford what the car is really worth? We really do not know. I believe that the companies who produce these expensive cars only price them as high as they do because they know only a certain percentage of wealthy people will buy them. If the producers of these cars priced them at what they were really worth, very few people would buy them. If these car producers price their cars at a ridiculously high price, a small percentage of wealthy people will still buy these cars. Moreover, no matter what price these cars are marked for, not many will be bought. A company may be thinking, for example, if only 100 of these cars will be sold regardless of the price; why not jack up the price as high as possible? The company may lose a few sales here and there from buyers with a spending limit, but the majority of the people buying these cars most likely do not have a spending limit. With companies pricing items higher than what they are really worth, it is hard to decipher who is wealthy enough to own an item or not. Consequently, it does not really even matter who has the car if they do not even have any expenses to pay for it. Companies may also be jacking up the price of these cars so only a certain population of wealthy people will buy them, which in turn sets a precedent for the price of what people are willing…

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A) shut down
B) increase output produced
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D) unable to determine due to insufficient information
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Role of finance:
plan for accuire and utilize resources to maximize the efficiency and value
4c’s
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the cost behavior, i.e. the way costs change with the levels of activity. The answers to these questions are very much pertinent for a management accountant or a financial analyst since they are basic for a firm’s projections and profits which ultimately become the basis of all financial decisions. It is, therefore, necessary for a financial analyst to have a reasonably good working knowledge about the basic cost concepts and patterns of cost behavior. All these come within the ambit of cost accounting…

and
the
rule
of
law
are
the
most
important
institutions;
they
are
defined
by
contracts,
legislation
and
enforcement.
1.2
Scarcity,
Choice
and
Opportunity
Cost
• Because
we
live
in
a
world
of
scarcity,
where
not
everyone
can
have
everything
that
they
desire,
this
brings
choice,
the
decision
that
people…

such
as research and development, product design, and distribution.
B. Firms like Amazon are permitted to inventory shipping-out costs because those costs are key components
of earning sales revenue.
C. The following three costs all include direct labor as a component: product costs, manufacturing costs,
conversion costs.
D. The cost object determines which costs are direct and which are indirect.
E. The firm’s mandatory managerial accounting reports are prepared according to Generally Accepted…

getting the maximum benefits from its scarce resources.
Equality – means that those benefits are distributed uniformly among society’s members.
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Opportunity cost – of an item is what you give up to get that item.
3. Rational people think at the margin
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